14.0 MILLION COMMON SHARES REPURCHASED IN 2023
FOR $852 MILLION
NEW
YORK, Feb. 5, 2024
/PRNewswire/ -- Loews Corporation (NYSE: L) today released its
fourth quarter 2023 financial results.
Fourth Quarter highlights:
Loews Corporation reported net income of $446 million, or $1.99 per share, in the fourth quarter of 2023,
which represents a 26% increase over $355
million, or $1.49 per share,
in the fourth quarter of 2022. The following are the highlights for
the fourth quarter:
- CNA Financial Corporation's (NYSE: CNA) net income improved
year-over-year due to higher net investment income and higher
underwriting income.
- Boardwalk Pipelines' results improved due to higher revenues
from re-contracting, partially offset by higher expenses.
- These increases were partially offset by lower investment
returns on equity securities at the parent company compared to the
2022 period.
- Loews Corporation repurchased 2.1 million shares of its common
stock for a total cost of $141
million through the end of the quarter.
- Book value per share, excluding AOCI, increased 9% to
$81.92 as of December 31, 2023,
from $74.88 as of December 31,
2022 due to repurchases of common shares and strong operating
results during 2023.
- As of December 31, 2023, the
parent company had $2.6 billion of
cash and investments and $1.8 billion
of debt.
CEO commentary:
"Loews had a spectacular quarter, with each of
our subsidiaries producing strong results."
–
James S. Tisch, President and
CEO, Loews Corporation
Consolidated highlights:
|
December
31,
|
|
|
Three
Months
|
Years
Ended
|
|
(In millions, except
per share data)
|
2023
|
2022
(a)
|
2023
|
2022
(a)
|
|
Net income attributable
to Loews Corporation before
|
|
|
|
|
|
net
investment gains (losses)
|
$
442
|
$
378
|
$
1,469
|
$
960
|
|
Net investment gains
(losses):
|
|
|
|
|
|
CNA
|
4
|
(23)
|
(71)
|
(138)
|
|
Loews Hotels &
Co
|
|
|
36
|
|
|
Total net investment
gains (losses)
|
4
|
(23)
|
(35)
|
(138)
|
|
Net income attributable
to Loews Corporation
|
$
446
|
$
355
|
$
1,434
|
$
822
|
|
Net income per
share
|
$
1.99
|
$
1.49
|
$
6.29
|
$
3.38
|
|
|
December 31,
2023
|
|
December 31, 2022
(a)
|
|
|
|
|
|
|
Book value per
share
|
$
70.69
|
|
$
60.81
|
|
Book value per share
excluding AOCI
|
81.92
|
|
74.88
|
|
|
|
|
|
|
(a)
|
As of January 1,
2023, Loews Corporation adopted Accounting Standards Update
2018-12, "Financial Services – Insurance (Topic 944): Targeted
Improvements to the Accounting for Long-Duration Contracts ("ASU
2018-12"), which was applied retrospectively effective January 1,
2021. Previously reported amounts have been adjusted to reflect
application of the new guidance. See pages 4 and 5 of this release
for more information.
|
Three months ended December 31, 2023 compared to
2022
CNA:
- Net income attributable to Loews Corporation improved 57%
to $336 million from $214 million.
- Core income increased 37% to $362
million from $265
million.
- Results include higher net investment income from limited
partnerships and fixed income securities.
- Property and Casualty underwriting results were higher due to
improved underlying underwriting income and lower net catastrophe
losses, partially offset by lower favorable net prior year loss
reserve development.
- Net written premiums grew by 10% driven by strong retention and
new business.
- Property and Casualty combined ratio was 92.1% compared to
93.7%. Property and Casualty underlying combined ratio was 91.4%
compared to 91.2%.
- Net income was positively impacted by investment gains in 2023
compared to investment losses in 2022 mostly due to the favorable
change in fair value of non-redeemable preferred stock.
Boardwalk:
- Net income increased 11% to $92
million compared to $83
million.
- EBITDA increased 5% to $260
million compared to $248
million.
- Net income and EBITDA increased due to higher transportation
revenues from re-contracting and recently completed growth
projects, increased storage and parking and lending revenues, and
the Bayou Ethane acquisition. These increases were partially offset
by higher depreciation expenses due to an increased asset base from
recently completed growth projects and higher employee-related
expenses.
Loews Hotels:
- Net income of $32 million
compared to $33 million.
- Adjusted EBITDA of $83 million
compared to $85 million.
- Net income slightly decreased due to lower equity income from
joint ventures driven by decreased overall occupancy rates and
higher operating costs offset by consolidating the results of a
property previously accounted for under the equity method.
Corporate & Other:
- Results decreased to a net loss of $14
million compared to net income of $25
million.
- The decrease in results is primarily due to lower investment
income from parent company equity securities.
Year ended December 31, 2023 compared
to 2022
Loews Corporation reported net income of $1,434 million, or $6.29 per share, compared to $822 million, or $3.38 per share. The 74% year-over-year increase
was driven by the following:
- CNA's results improved due to higher net investment income,
higher Property and Casualty underwriting income, lower investment
losses, and a significantly lower unfavorable impact from the
long-term care annual reserve review performed in the third quarter
of each year.
- Investment income at the parent company improved due to higher
returns on short-term investments and equity securities.
- Boardwalk Pipelines' results increased due to higher revenues
from re-contracting and recently completed growth projects.
- Loews Hotels & Co's net income increased due to an
after-tax gain of $36 million related
to the acquisition of an additional equity interest in, and the
consolidation of, a previously unconsolidated joint venture
property in the second quarter of 2023.
- These increases were partially offset by an after-tax charge of
$37 million related to the
termination of a defined benefit plan in the third quarter of 2023
in Corporate & Other.
Share Purchases:
- On December 31, 2023, there were
222.2 million shares of Loews common stock outstanding.
- For the three months and year ended December 31, 2023, Loews repurchased 2.1
million and 14.0 million shares of its common stock at an aggregate
cost of $141 million and $852 million, respectively.
- For the year ended December 31,
2023, Loews purchased 4.5 million shares of CNA common stock
at an aggregate cost of $178
million.
- Depending on market conditions, Loews may from time to
time purchase shares of its and its subsidiaries' outstanding
common stock in the open market, in privately negotiated
transactions or otherwise.
Reconciliation of GAAP Measures to Non-GAAP Measures
This news release contains financial measures
that are not in accordance with accounting principles generally
accepted in the United States of
America ("GAAP"). Management believes some investors may
find these measures useful to evaluate our and our subsidiaries'
financial performance. CNA utilizes core income, Boardwalk utilizes
earnings before interest, income tax expense, depreciation and
amortization ("EBITDA"), and Loews Hotels utilizes Adjusted EBITDA.
These measures are defined and reconciled to the most comparable
GAAP measures on pages 6 and 7 of this release.
Earnings Remarks and Conference Calls
For Loews Corporation
- Today, February 5, 2024, earnings
remarks will be available on our website.
- Remarks will include commentary from Loews's president and
chief executive officer and chief financial officer.
For CNA
- Today, February 5, 2024, CNA
will host an earnings call at 9:00 a.m.
ET.
- A live webcast will be available via the Investor Relations
section of CNA's website at www.cna.com.
- To participate by phone, dial 1-844-481-2830 (USA toll-free) or +1-412-317-1850
(International).
About Loews Corporation
Loews Corporation is a diversified company with
businesses in the insurance, energy, hospitality and packaging
industries. For more information, please visit www.loews.com.
Forward-Looking Statements
Statements contained in this news release which
are not historical facts are "forward-looking statements" within
the meaning of the federal securities laws. Forward-looking
statements are inherently uncertain and subject to a variety of
risks that could cause actual results to differ materially from
those expected by management of the Company. A discussion of the
important risk factors and other considerations that could
materially impact these matters, as well as the Company's overall
business and financial performance, can be found in the Company's
reports filed with the Securities and Exchange Commission and
readers of this release are urged to review those reports carefully
when considering these forward-looking statements. Copies of these
reports are available through the Company's website
(www.loews.com). Given these risk factors, investors and analysts
should not place undue reliance on forward-looking statements. Any
such forward-looking statements speak only as of the date of this
news release. The Company expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statement to reflect any change in the Company's
expectations with regard thereto or any change in events,
conditions or circumstances on which any forward-looking statement
is based.
Loews Corporation and
Subsidiaries
|
|
Selected Financial
Information
|
|
|
|
|
December
31,
|
|
|
Three
Months
|
Years
Ended
|
|
(In
millions)
|
2023
|
2022
|
2023
|
2022
|
|
Revenues:
|
|
|
|
|
|
CNA Financial
(a)
|
$ 3,507
|
$ 3,111
|
$
13,299
|
$
11,879
|
|
Boardwalk
Pipelines
|
511
|
401
|
1,636
|
1,446
|
|
Loews Hotels & Co
(b)
|
210
|
189
|
852
|
721
|
|
Corporate investment
income (loss) and other
|
30
|
92
|
114
|
(2)
|
|
Total
|
$ 4,258
|
$ 3,793
|
$
15,901
|
$
14,044
|
|
Income (Loss) Before
Income Tax:
|
|
|
|
|
|
CNA Financial (a)
(c)
|
$
460
|
$
283
|
$ 1,518
|
$
814
|
|
Boardwalk
Pipelines
|
116
|
109
|
373
|
330
|
|
Loews Hotels & Co
(b)
|
41
|
41
|
200
|
161
|
|
Corporate:
|
|
|
|
|
|
Investment income
(loss), net
|
30
|
92
|
114
|
(8)
|
|
Other (d)
|
(34)
|
(60)
|
(209)
|
(183)
|
|
Total (c)
|
$
613
|
$
465
|
$ 1,996
|
$ 1,114
|
|
Net Income (Loss)
Attributable to Loews Corporation:
|
|
|
|
|
|
CNA Financial (a)
(c)
|
$
336
|
$
214
|
$ 1,094
|
$
612
|
|
Boardwalk
Pipelines
|
92
|
83
|
283
|
247
|
|
Loews Hotels & Co
(b)
|
32
|
33
|
147
|
117
|
|
Corporate:
|
|
|
|
|
|
Investment income
(loss), net
|
24
|
72
|
90
|
(6)
|
|
Other (d)
|
(38)
|
(47)
|
(180)
|
(148)
|
|
Net income
attributable to Loews Corporation (c)
|
$
446
|
$
355
|
$ 1,434
|
$
822
|
|
|
|
(a)
|
The three months ended
December 31, 2023 includes net investment gains of $6 million ($4
million after tax and noncontrolling interests). The three months
ended December 31, 2022 includes net investment losses of $33
million ($23 million after tax and noncontrolling interests). The
years ended December 31, 2023 and 2022 include net investment
losses of $99 million and $199 million ($71 million and $138
million after tax and noncontrolling interests).
|
(b)
|
Includes a gain of $46
million ($36 million after tax) for the year ended December 31,
2023 related to Loews Hotels & Co's acquisition of an
additional equity interest in, and the consolidation of, a
previously unconsolidated joint venture property.
|
(c)
|
The effects of adopting
ASU 2018-12 on the Selected Financial Information were as
follows:
|
|
|
Three Months Ended
December 31, 2022
|
As
Reported
|
|
Effect of
Adoption
|
|
As
Adjusted
|
|
|
|
|
|
|
|
|
Income (Loss) Before
Income Tax:
|
|
|
|
|
|
|
CNA
Financial
|
$
294
|
|
$
(11)
|
|
$
283
|
|
Total
|
476
|
|
(11)
|
|
465
|
|
Net Income (Loss)
Attributable to Loews Corporation:
|
|
|
|
|
|
|
CNA
Financial
|
$
223
|
|
$
(9)
|
|
$
214
|
|
Total
|
364
|
|
(9)
|
|
355
|
|
|
|
|
|
|
|
|
Year Ended December 31,
2022
|
As
Reported
|
|
Effect of
Adoption
|
|
As
Adjusted
|
|
|
|
|
|
|
|
|
Income (Loss) Before
Income Tax:
|
|
|
|
|
|
|
CNA
Financial
|
$
1,081
|
|
$
(267)
|
|
$
814
|
|
Total
|
1,381
|
|
(267)
|
|
1,114
|
|
Net Income (Loss)
Attributable to Loews Corporation:
|
|
|
|
|
|
|
CNA
Financial
|
$
802
|
|
$
(190)
|
|
$
612
|
|
Total
|
1,012
|
|
(190)
|
|
822
|
|
|
|
|
|
|
|
|
(d)
|
Consists of parent
company interest expense, corporate expenses and the equity income
(loss) of Altium Packaging. The year ended December 31, 2023
includes a charge of $47 million ($37 million after tax) related to
the termination of a defined benefit plan.
|
Loews Corporation and
Subsidiaries
|
|
Consolidated
Financial Review
|
|
|
|
|
December
31,
|
|
|
Three
Months
|
Years
Ended
|
|
(In millions, except
per share data)
|
2023
|
2022
|
2023
|
2022
|
|
Revenues:
|
|
|
|
|
|
Insurance
premiums
|
$
2,479
|
$
2,232
|
$
9,480
|
$
8,667
|
|
Net investment
income
|
643
|
600
|
2,395
|
1,802
|
|
Investment gains
(losses) (a)
|
6
|
(33)
|
(53)
|
(199)
|
|
Operating revenues and
other
|
1,130
|
994
|
4,079
|
3,774
|
|
Total
|
4,258
|
3,793
|
15,901
|
14,044
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
Insurance claims and
policyholders' benefits (b)
|
1,810
|
1,694
|
7,068
|
6,653
|
|
Operating expenses and
other
|
1,835
|
1,634
|
6,837
|
6,277
|
|
Total
|
3,645
|
3,328
|
13,905
|
12,930
|
|
|
|
|
|
|
|
Income before income
tax (b)
|
613
|
465
|
1,996
|
1,114
|
|
Income tax expense
(b)
|
(136)
|
(87)
|
(451)
|
(223)
|
|
Net income
(b)
|
477
|
378
|
1,545
|
891
|
|
Amounts attributable to
noncontrolling interests (b)
|
(31)
|
(23)
|
(111)
|
(69)
|
|
Net income attributable
to Loews Corporation (b)
|
$
446
|
$
355
|
$
1,434
|
$
822
|
|
|
|
|
|
|
|
Net income per share
attributable to Loews
Corporation (b)
|
$
1.99
|
$
1.49
|
$
6.29
|
$
3.38
|
|
|
|
|
|
|
|
Weighted average number
of shares
|
223.80
|
238.08
|
227.81
|
243.28
|
|
|
|
(a)
|
Includes a gain of $46
million ($36 million after tax) for the year ended December 31,
2023 related to Loews Hotels & Co's acquisition of an
additional equity interest in, and the consolidation of, a
previously unconsolidated joint venture property.
|
(b)
|
The effects of adopting
ASU 2018-12 on the Consolidated Financial Review were as
follows:
|
|
|
Three Months Ended
December 31, 2022
|
As
Reported
|
|
Effect of
Adoption
|
|
As
Adjusted
|
|
|
|
|
|
|
|
|
Insurance claims and
policyholders' benefits
|
$
1,683
|
|
$
11
|
|
$
1,694
|
|
Income before income
tax
|
476
|
|
(11)
|
|
465
|
|
Income tax
expense
|
(88)
|
|
1
|
|
(87)
|
|
Net income
|
388
|
|
(10)
|
|
378
|
|
Amounts attributable to
noncontrolling interests
|
(24)
|
|
1
|
|
(23)
|
|
Net income attributable
to Loews Corporation
|
364
|
|
(9)
|
|
355
|
|
Net income per share
attributable to Loews Corporation
|
1.53
|
|
(0.04)
|
|
1.49
|
|
|
|
|
|
|
|
|
Year Ended December 31,
2022
|
As
Reported
|
|
Effect of
Adoption
|
|
As
Adjusted
|
|
|
|
|
|
|
|
|
Insurance claims and
policyholders' benefits
|
$
6,386
|
|
$
267
|
|
$
6,653
|
|
Income before income
tax
|
1,381
|
|
(267)
|
|
1,114
|
|
Income tax
expense
|
(278)
|
|
55
|
|
(223)
|
|
Net income
|
1,103
|
|
(212)
|
|
891
|
|
Amounts attributable to
noncontrolling interests
|
(91)
|
|
22
|
|
(69)
|
|
Net income attributable
to Loews Corporation
|
1,012
|
|
(190)
|
|
822
|
|
Net income per share
attributable to Loews Corporation
|
4.16
|
|
(0.78)
|
|
3.38
|
|
Definitions of Non-GAAP Measures and Reconciliation of GAAP
Measures to Non-GAAP Measures:
CNA Financial Corporation
Core income is calculated by excluding from CNA's
net income attributable to Loews Corporation the after-tax effects
of investment gains (losses). In addition, core income excludes the
effects of noncontrolling interests. The calculation of core income
excludes investment gains (losses) because these are generally
driven by economic factors that are not necessarily reflective of
CNA's primary operations. The following table presents a
reconciliation of CNA net income attributable to Loews Corporation
to core income:
|
December
31,
|
|
|
Three
Months
|
Years
Ended
|
|
(In
millions)
|
2023
|
2022
|
2023
|
2022
|
|
CNA net income
attributable to Loews
Corporation
|
$
336
|
$
214
|
$
1,094
|
$
612
|
|
Investment (gains)
losses
|
(5)
|
26
|
79
|
154
|
|
Consolidation
adjustments including noncontrolling
interests
|
31
|
25
|
111
|
70
|
|
Core income
|
$
362
|
$
265
|
$
1,284
|
$
836
|
|
Boardwalk Pipelines
EBITDA is defined as earnings before interest,
income tax expense, depreciation and amortization. The following
table presents a reconciliation of Boardwalk net income
attributable to Loews Corporation to EBITDA:
|
December
31,
|
|
|
Three
Months
|
Years
Ended
|
|
(In
millions)
|
2023
|
2022
|
2023
|
2022
|
|
Boardwalk net income
attributable to Loews
Corporation
|
$
92
|
$
83
|
$
283
|
$
247
|
|
Interest,
net
|
38
|
40
|
144
|
166
|
|
Income tax
expense
|
24
|
26
|
90
|
83
|
|
Depreciation and
amortization
|
106
|
99
|
412
|
396
|
|
EBITDA
|
$
260
|
$
248
|
$
929
|
$
892
|
|
Loews Hotels & Co
Adjusted EBITDA is calculated by excluding from
Loews Hotels & Co's EBITDA, noncontrolling interest share of
EBITDA adjustments, state and local government development grants,
gains or losses on asset acquisitions and dispositions, asset
impairments, and equity method income, and including Loews Hotels
& Co's pro rata Adjusted EBITDA of equity method investments.
Pro rata Adjusted EBITDA of equity method investments is calculated
by applying Loews Hotels & Co's ownership percentage to the
underlying equity method investment's components of EBITDA and
excluding distributions in excess of basis.
The following table presents a reconciliation of
Loews Hotels & Co net income attributable to Loews Corporation
to Adjusted EBITDA:
|
December
31,
|
|
|
Three
Months
|
Years
Ended
|
|
(In
millions)
|
2023
|
2022
|
2023
|
2022
|
|
Loews Hotels & Co
net income attributable to Loews
Corporation
|
$
32
|
$
33
|
$
147
|
$
117
|
|
Interest,
net
|
4
|
4
|
9
|
11
|
|
Income tax
expense
|
9
|
8
|
53
|
44
|
|
Depreciation and
amortization
|
18
|
17
|
69
|
64
|
|
EBITDA
|
63
|
62
|
278
|
236
|
|
Noncontrolling interest
share of EBITDA adjustments
|
(2)
|
|
(5)
|
|
|
Gain on asset
acquisition
|
|
|
(46)
|
|
|
Asset
impairments
|
3
|
3
|
12
|
25
|
|
Equity investment
adjustments:
|
|
|
|
|
|
Loews Hotels & Co's
equity method income
|
(31)
|
(33)
|
(129)
|
(148)
|
|
Pro rata Adjusted
EBITDA of equity method
investments
|
50
|
54
|
218
|
234
|
|
Consolidation
adjustments
|
|
(1)
|
|
(2)
|
|
Adjusted
EBITDA
|
$
83
|
$
85
|
$
328
|
$
345
|
|
The following table presents a reconciliation of
Loews Hotels & Co's equity method income to Pro rata Adjusted
EBITDA of equity method investments:
|
December
31,
|
|
|
Three
Months
|
Years
Ended
|
|
(In
millions)
|
2023
|
2022
|
2023
|
2022
|
|
Loews Hotels & Co's
equity method income
|
$
31
|
$
33
|
$
129
|
$
148
|
|
Pro rata share of
equity method investments:
|
|
|
|
|
|
Interest,
net
|
10
|
11
|
43
|
40
|
|
Income tax
expense
|
|
|
|
|
|
Depreciation and
amortization
|
12
|
12
|
49
|
50
|
|
Distributions in excess
of basis
|
(3)
|
(3)
|
(3)
|
(4)
|
|
Consolidation
adjustments
|
|
1
|
|
|
|
Pro rata Adjusted
EBITDA of equity method
investments
|
$
50
|
$
54
|
$
218
|
$
234
|
|
View original
content:https://www.prnewswire.com/news-releases/loews-corporation-reports-net-income-of-446-million-for-the-fourth-quarter-of-2023-and-1-4-billion-for-the-full-year-302052239.html
SOURCE Loews Corporation